Problem Description:
Multiple Users on our domain are complaining that after they logout or switch to a new user the mouse becomes disabled and the mouse arrow centers in the middle of the screen. They then must either restart the machine using the power button or by unplugging and then replugging in the mouse. The keyboard does not become disabled.
Mouse Specific Problem = No. We checked the mouse in question. We take the mouse to a new machine on the domain, but not on the same subnet and test the process and cannot reproduce. We have used both ball and optical mice on this system and the problem reproduces.
Mouse Detection Error = No. Mouse is detected in device manager and no errors or unknowns reported.
Port Specific Problem = No. We checked ports to see if the error produces itself when plugged in other USB ports. The error does reproduce.
PC Specific Problem = No. We physically took the machine in question with monitor, keyboard, mouse, and cables back to our central location on a different subnet. Using the users login and password we cannot reproduce the problem. After giving the user a new machine with a new image the problem reproduces itself at the location. Problem is also occurring independent of the Dell model used.
User specific Problem = No. Many users on the same subnet are experiencing the problem, yet not all users experiencing the problem or at least are not reporting the problem.
Network-wide Problem=No. Most subnets on the domain are not experiencing the problem. Problem is currently isolated to two different subnets in two separate geographic locations.
Group Policy Problem = Do not believe so. We have delved into our group policies line by line to see if there were any associated keys or policies that may be affecting the mouse or power to the USB. We have not found any policy pointing to this.
Steps to reproduce:

Mouse arrow is now centered at logon screen and does not move.
Possible Causes:
We believe that there must be some issue in either power management configuration or with the HIDUSB.sys driver causing the issue. Since the issue is only located on certain subnets we thought that a group policy that is being distributed may be the issue, but since it is not affecting everyone on the subnet we are leery to take the local server down or redo all of our group policies and containers yet. Also if the computers are taken out of the OU the problem
Problem Description:
Multiple Users on our domain are complaining that after they logout or switch to a new user the mouse becomes disabled and the mouse arrow centers in the middle of the screen. They then must either restart the machine using the power button or by unplugging and then replugging in the mouse. The keyboard does not become disabled.
Mouse Specific Problem = No. We checked the mouse in question. We take the mouse to a new machine on the domain, but not on the same subnet and test the process and cannot reproduce. We have used both ball and optical mice on this system and the problem reproduces.
Mouse Detection Error = No. Mouse is detected in device manager and no errors or unknowns reported.
Port Specific Problem = No. We checked ports to see if the error produces itself when plugged in other USB ports. The error does reproduce.
PC Specific Problem = No. We physically took the machine in question with monitor, keyboard, mouse, and cables back to our central location on a different subnet. Using the users login and password we cannot reproduce the problem. After giving the user a new machine with a new image the problem reproduces itself at the location. Problem is also occurring independent of the Dell model used.
User specific Problem = No. Many users on the same subnet are experiencing the problem, yet not all users experiencing the problem or at least are not reporting the problem.
Network-wide Problem=No. Most subnets on the domain are not experiencing the problem. Problem is currently isolated to two different subnets in two separate geographic locations.
Group Policy Problem = Do not believe so. We have delved into our group policies line by line to see if there were any associated keys or policies that may be affecting the mouse or power to the USB. We have not found any policy pointing to this.
Steps to reproduce:

Mouse arrow is now centered at logon screen and does not move.
Possible Causes:
We believe that there must be some issue in either power management configuration or with the HIDUSB.sys driver causing the issue. Since the issue is only located on certain subnets we thought that a group policy that is being distributed may be the issue, but since it is not affecting everyone on the subnet we are leery to take the local server down or redo all of our group policies and containers yet. Also if the computers are taken out of the OU the problem
Recent Attempts to Fix:
We have attempted all the fixes suggested in the articles http://windows7themes.net/mouse-not-working-after-hibernation.html, http://support.microsoft.com/kb/930091, http://www.prevx.com/blog/140/Black-Screen-woes-could-affect-millions-on-Windows--Vista-and-XP.html , and http://www.vistaheads.com/forums/microsoft-public-fr-windows-vista-general/460788-vista-usb-mouse-freezes-fix-windows-7-a.html, yet the problem still persists.
We have a checked event viewer and checked for errors, ran a logman trace on the USB, and ran Performance Analyzer with rebootcycle traces. We cannot find anything that points to the issue.
Is there a USB trace that can be performed using xbootmgr,logman or some other utility that can capture what is occurring only after a domain user logs off and a new/same user logs back in? Or does anyone have any other suggestions?

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No answer; only a comment. It would happen to me on a Dell PC whit WinXP, but to no one else in the company with essentially the same OS and hardware. Only (temporary) fix I found was unplug/replug the mouse. In my case, it was not predictable. It had no relationship to logon/switch user, but probably was related to power management since it happened usually when coming back from a screen-saver (not password protected). -- Tom

Same problem here running Win7 on Dell PC's using USB mouses. It seems to be slowly spreading to other systems on our network over the last two years or so. Sure wish Microsoft and/or Dell would provide a solution.

@meterreader22: I have only seen this "glitch" happen with Dell systems. Problems were getting to be a real nuisance so company switched over to HP systems and have not seen the problem happen with any new systems.

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